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Multifamily Homes

Find out how the VA program works with multifamily homes.


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Multifamily Homes

What is a Multifamily Home?

A multifamily home is a residential building designed to accommodate multiple separate living units, each intended for individual households. These structures, also known as multiplexes or apartment buildings, can range from duplexes and triplexes to larger complexes with numerous units. Multifamily homes offer a variety of living arrangements within a single building, providing residents with private living spaces while sharing common areas such as hallways, entryways, or outdoor spaces. Each unit typically includes bedrooms, bathrooms, a kitchen, and living areas. Multifamily homes cater to a diverse range of residents, from families to individuals, and often feature amenities like shared laundry facilities or communal spaces. This housing option is valued for its efficient land use and the potential for rental income, making it a practical choice for investors and those seeking a community-oriented living environment.

VA Multifamily Homes


  • Rental Income Potential: Multifamily homes offer the opportunity to generate rental income by leasing out multiple units to tenants, providing a steady and potentially substantial cash flow for the property owner.
  • Cost Efficiency: Shared expenses for maintenance, landscaping, and utilities can lead to cost savings compared to maintaining multiple individual single-family homes.
  • Diversified Investment: Owning a multifamily property allows for a diversified investment portfolio, spreading risk across multiple rental units and tenants rather than relying on the income from a single property.
  • Community and Social Interaction: Residents in multifamily homes often enjoy a sense of community, fostering social interactions and a shared living environment.
  • Space Utilization: Multifamily homes are designed to maximize space utilization, providing multiple living units within a single building, making efficient use of the available land.
  • Property Appreciation: Well-maintained multifamily properties in desirable locations have the potential for strong appreciation over time, contributing to the overall value of the investment.
  • Flexibility in Living Arrangements: Multifamily homes accommodate various living arrangements, making them suitable for Veteran families, individuals, or those seeking shared housing.
  • Economies of Scale: Bulk purchasing and maintenance agreements for shared spaces can lead to economies of scale, reducing costs for the property owner.


  • Management Challenges: Managing multiple units and tenants can be complex and time-consuming, requiring effective property management skills to handle issues such as rent collection, maintenance, and conflict resolution.
  • Initial Capital Investment: Acquiring a multifamily property often has a significantly higher sales price, which may be a barrier for some Veterans.
  • Dependence on Tenants: The financial success of a multifamily property is heavily dependent on tenants paying rent consistently. Vacancies or non-payment by a significant number of tenants can affect the property’s cash flow.
  • Shared Expenses: While shared expenses can be an advantage, disagreements among co-owners on how to manage and allocate these costs may lead to conflicts and complications.
  • Limited Privacy: Residents in multifamily homes may experience reduced privacy compared to those in single-family homes, as they share common areas and are in close proximity to neighbors.
  • Regulatory Compliance: Multifamily properties are subject to various regulations, zoning requirements, and building codes, which can add complexity and compliance costs.
  • Economic Downturn Impact: Economic recessions or downturns can impact the ability of tenants to pay rent, leading to increased vacancies and financial challenges for property owners.
  • Resale Challenges: Selling a multifamily property can be more complex than selling a single-family home, requiring a buyer interested in an investment property and potentially limiting the pool of potential buyers

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VA Multifamily Homes

Local Zoning

When a property owner decides to convert a single-family home into a multifamily home without obtaining the necessary permissions from the local building authority, it can lead to complications down the line. In such cases, the property will have to be inspected and potentially rezoned, which can be a time-consuming process. It’s important to note that converting a property without the appropriate permissions not only poses legal issues but could also result in safety concerns for the occupants. Therefore, it’s crucial for the seller to seek proper approval before making any significant changes to their property. It may seem like a small inconvenience initially, but getting the necessary permissions can save time, money, and prevent unnecessary stress in the future.

4 Unit Maximum

The maximum number of units that can be financed with a VA home loan is 4. This includes the unit occupied by the Veteran. So if you’re considering purchasing a property with more than four units, you may need to explore other financing options such as a commercial loan.


The Veteran is required to occupy at least one unit as their primary principle residence.

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